Chronic power shortages are one of the biggest obstacles to growth
in countries across Africa, with a dearth of electricity or regular
blackouts strangling industries and the continent is turning to outside
investors and renewables to boost output.
Africa-focused funds fuse $3.3 billion electric power assets
Two Africa-focused
funds have created a new energy joint venture capable of generating
1,575 megawatts (MW) of electricity in at least 10 countries by merging
assets totalling $3.3 billion.
Chronic power
shortages are one of the biggest obstacles to growth in countries across
Africa, with a dearth of electricity or regular blackouts strangling
industries and the continent is turning to outside investors and
renewables to boost output.
The deal to develop and finance projects, announced on Wednesday, brings together Lagos-based Africa Finance Corporation (AFC) and Harith General Partners, which has offices in South Africa and Ivory Coast.
Harith's interests include Azura Edo independent power plant (IPP), a gas turbine power station in Nigeria, and Kelvin Power Station in South Africa. AFC's include the Kpone IPP under construction in Ghana, and Cabeolica wind farm in Cape Verde.
"The
joint venture's near-term portfolio supplies reliable energy to over 30
million people in at least 10 African countries and has a combined
gross operational and under-construction capacity of 1,575 MW," they said in a statement.
A report published last month by PricewaterhouseCoopers (PwC) said an estimated 643 million people are living without electricity in Africa, with 80 percent based in rural areas.
Established
in 2007, the AFC provides public and private money for major
infrastructure projects around Africa and has a balance sheet of $3.2
billion.
It is 42.5 percent owned by Nigeria's
central bank, 47.6 percent by other African financial institutions and
9.8 percent by industrial and corporate shareholders, according to its
website.
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